WB, Switzerland sponsor green bus system in HCMC
VGP – The World Bank (WB) and the Vietnamese Ministry of Finance signed an agreement worth US$ 10.5 million in non-refundable aid for a technical support project on HCMC’s green transport development.
The US$ 10.7 billion project received US$ 10.5 million from the Swiss State Secretariat for Economic Affairs (SECO). The local authorities will provide the rest of US$ 202,000.
The green bus system covered 28 bus stations in 23 km of length, providing transport services to connect the inner city with suburban areas in the Southeastern and Northwestern regions.
“The scale-up activities made possible by the additional grant will enhance the development impacts of the new bus system. By promoting integration between transport and urban development and among various transport modes, the new bus system would improve accessibility and mobility for commuters which in turn would draw in more and more riders”, said the World Bank Country Director for Viet Nam Ousmane Dione.
“The project will demonstrate considerable economic, environmental and social benefits, and guide urban development towards more sustainable patterns in HCMC,” said Ivo Sieber, Ambassador - Designate of Switzerland to Viet Nam. The project thus can serve as a blueprint for replication in other cities in Viet Nam with similar challenges”, Mr. Ousmane Dione noted.
The grant will help enable integrated and transit-oriented urban development around the new bus corridor. This will include creating a regulatory framework for transit-oriented urban development and boost private sector investment for such development. The new corridor can trigger urban renewal and create public spaces around the transit system, where it is scarce.
The grant will also help integrate the bus system with other transport modes, thanks to measures to maximize connectivity and ridership while also providing last-mile connections such as feeder bus services to carry people to and from the nearest bus station along the new line. The grant will also finance capacity building for transport officials and urban planners.
This first bus rapid transit line developed in HCMC is financed by an US$124-million credit from the International Development Association of the World Bank, and a US$13.45 million-contribution from the Government of Viet Nam./.
By Khanh Phuong
